KEIRETSU SECURITY AND EXCHANGE COMMISSION

~ Keiretsu is a Japanese term referring to a business ~ The Securities and Exchange Commission oversees
network made up of different companies, including securities exchanges, securities brokers and dealers,
manufacturers, supply chain partners, distributors, and investment advisors, and mutual funds in an effort to
occasionally financiers. promote fair dealing, the disclosure of important market
information, and to prevent fraud.
~ A keiretsu is a set of companies with interlocking
business relationships and shareholdings that have ~ SEC is the registrar and overseer of the Philippine
dominated the Japanese economy since the second half corporate sector; it supervises more than 500,000 active
of the 20th century. corporations and evaluates the financial statements (FS)
filed by all corporations registered with it.
~ Japanese term refers to industrial network linked by
trading relationships as well as cross-share holdings of Models of Corporate Governance and their Key Players
debt and equity.
1. The Anglo-US Model
Areas of CSR
- characterized by share ownership of individual, and
- State increasingly institutional, investors not affiliated with
the corporation (known as outside shareholders or
- Business
“outsiders”)
- Civic Society
Key Players
Elements of CSR
 Management
1. Economic Responsibility  Directors Corporate Governance Triangle
 Shareholders
- first and most apparent
- Composition of Board of Directors
- focuses on the different practices that would lead to
long-term growth of the business. A. Insiders – a person who is either employed by the
corporation or somebody who has significant personal
2. Legal Responsibility relationships with corporate management.
- to obey all laws set forth by society all the time. B. Outsiders – a person or institution which has no
- to follow all written and codified laws that concern its direct relationship with the corporation or corporate
existence. management.

- the government act as the regulators of the business. 2. The Japanese Model

3. Ethical Responsibility - characterized by a high level of stock ownership by

affiliated banks and companies; a banking system
- directly connected to the legal responsibility characterized by strong, long-term links between bank
- to do what is right even when business is not obligated and corporation.
to do so by the law. Key Players
4. Environmental Responsibility  main bank (a major inside shareholder)
- refers to the organization’s commitment to  affiliated company or keiretsu (a major inside
sustainability and environmental-friendly. shareholder)
 management
5. Philanthropic Responsibility  government
- also known as discretionary responsibility.

- refers to the corporations’ aims, goals and objectives

for actively bettering society as a whole.
3. The German Model Investment Bankers

- governs German and Austrian corporations. Some
elements of the model also apply in the Netherlands
and Scandinavia. Furthermore, some corporations in
France and Belgium have recently introduced some
elements of the German model.
Key Players
 German banks
 corporate shareholders
CORE VALUES OF CSR
1.Excellence – good output, striving high standards
2.Innovation – adopt solutions, develop, strategize
3.Participation – contributions, initiatives
4.Ownership – don’t expect in return, trust
5.Leadership – dedicated, setting example
- is an individual or entity which acts as an agent for
corporation issuing securities. Some investment bankers
also maintain a brokerage or a dealership operation and
offer advisory services to its client.
ROLE OF INVESTMENT BANKER
1. Origination - It covers the secondary operations of
discovery, investigation, and negotiation. The primary
function of the Investment banking is the cautious study
of the soundness and reliability of the corporation with
the view of bringing its securities to the investment
market.
2. Underwriting - is an arrangement with an investment
banker whereby the investment banker agrees to buys
the entire issue at a set price. Investment banker also
refers to the guarantee by the IB that the issuer
company will receive a minimum amount of cash for
their new issued securities for sale.
3. Distribution - announcement of bidding

- means the investment banker will sell

Stock Exchanges the securities on behalf of the company because it will
- is a centralized location that brings corporations and be expensive to sell the securities. The investment
governments so that investors can buy and sell equities. banker will have a channel to sell the securities.

- refers to the entity which offers trading services and

facilities for stock brokers and traders, to buy and sell
share of stock ang securities.

ROLES OF STOCK EXCHANGE

1. Raise capital/funds
2. Issuing equity shares
3. Facilitates the stock
4. Mobilize saving
5. Improves corporate governance
6. Indicator for economy
7. Distributes profit
8. Creates opportunities for small investors
9. Facilitates growth
10. Facilitating raising capital for government